Yields 14.4%, Sure, But It's Comically Overpriced
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 24 2024
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Source: NASDAQ.COM
Premium Risks: The Guggenheim Strategic Opportunity Fund (GOF) is currently trading at a 27% premium, which poses significant downside risk for new investors, as the fund typically returns to its intrinsic value over time.
Alternative Strategies: Instead of buying at a premium, investors are advised to wait for market pullbacks to purchase GOF or consider other funds like PIMCO Dynamic Income Opportunities Fund (PDO) that offer better value and yields without steep premiums.
Analyst Views on CCD
Wall Street analysts forecast CCD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCD is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 22.530
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Current: 22.530
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About CCD
Calamos Dynamic Convertible and Income Fund (the Fund) is a diversified, closed-end management investment company. The Fund’s investment strategy is to provide total return through a combination of capital appreciation and current income. The Fund invests at least 80% of the Fund’s managed assets will be invested in convertible securities and income-producing securities, with at least 50% of the Fund’s managed assets invested in convertible securities. The Fund may invest up to 50% of its managed assets in securities of foreign issuers, with up to 15% of its managed assets in securities issued by foreign issuers in emerging markets. The Fund may invest up to 20% of its managed assets in high-yield non-convertible bonds. The Fund holds investments in various sectors, such as consumer discretionary, information technology, healthcare, communication services, industrials, financials, utilities, energy, materials, real estate and others. Its investment advisor is Calamos Advisors LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
